Written answers
Thursday, 4 July 2024
Department of Finance
Tax Collection
Matt Shanahan (Waterford, Independent)
Link to this: Individually | In context | Oireachtas source
113. To ask the Minister for Finance to provide, in tabular form, a regional and county breakdown of the number of businesses who remain non-compliant with the debt warehousing scheme; if he has any concerns as to a disproportionate effect in terms of rural and regional economic fallout; and if he will make a statement on the matter. [23236/24]
Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
The Tax Debt Warehousing scheme was introduced in May 2020 to provide a vital liquidity support to businesses impacted by Covid-19 trading restrictions. The scheme allowed businesses to temporarily ‘park’ eligible taxes on an interest-free basis, the vast majority of which related to VAT and payroll taxes deducted by employers from their employees. Warehouse customers had until 1 May 2024 to put a plan in place to address their warehoused debt prior to the scheme ending. However, Revenue is firmly committed to supporting viable businesses and has taken a flexible and pragmatic approach to the payment of warehoused debt.
On 5 June 2024, Revenue published its detailed statistical report on the scheme, which demonstrates the significant level of engagement with Revenue in the weeks leading up to the 1 May 2024 deadline. The report contains details on the 12,747 Phased Payment Arrangements agreed for €1.2 billion of warehouse debt, in addition to analysis of the 7,042 taxpayers who have been removed from the warehouse. The report is available at the following link:
.
A breakdown of these 7,042 taxpayers by county is set out in the table below, which shows that the non-compliant former warehouse cases are spread reasonably evenly across counties, with the larger urban areas having a larger share. This is in line with the geographical spread of the cases that availed of the scheme during the years when it was in operation and would not appear to suggest a disproportionate effect in terms of rural and regional economic fallout.
Taxpayers removed from the Tax Debt Warehousing scheme by county:
| County | No. of Taxpayers | Relevant debt (€m) |
|---|---|---|
| Carlow | 89 | 0.64 |
| Cavan | 102 | 0.69 |
| Clare | 149 | 2.11 |
| Cork | 663 | 6.85 |
| Donegal | 237 | 2.26 |
| Dublin | 2,258 | 45.40 |
| Galway | 404 | 7.28 |
| Kerry | 186 | 1.78 |
| Kildare | 385 | 4.96 |
| Kilkenny | 136 | 1.36 |
| Laois | 97 | 1.51 |
| Leitrim | 57 | 0.39 |
| Limerick | 231 | 2.78 |
| Longford | 74 | 0.69 |
| Louth | 220 | 3.00 |
| Mayo | 189 | 2.27 |
| Meath | 306 | 2.72 |
| Monaghan | 85 | 1.22 |
| Offaly | 70 | 0.38 |
| Roscommon | 83 | 1.03 |
| Sligo | 78 | 0.64 |
| Tipperary | 176 | 2.19 |
| Waterford | 188 | 1.78 |
| Westmeath | 120 | 1.35 |
| Wexford | 233 | 1.82 |
| Wicklow | 226 | 3.49 |
| Grand Total | 7,042 | 100.59 |
This debt is now subject to Revenue's normal collection and enforcement proceedings and is subject to interest at the standard rate of 8 per cent or 10 per cent as appropriate. I am advised that Revenue only commences enforcement proceedings for outstanding tax liabilities as a last resort, where there has been no meaningful engagement from the taxpayer. Revenue has commenced reviewing these cases and will determine the appropriate actions on a case-by-case basis, having regard to the individual circumstances of each taxpayer.
No comments